Florida Senate - 2015 COMMITTEE AMENDMENT
Bill No. SB 1126
Ì241974AÎ241974
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/10/2015 .
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The Committee on Banking and Insurance (Richter) recommended the
following:
1 Senate Amendment
2
3 Delete lines 66 - 272
4 and insert:
5 provide that such refund will be paid from one of the following
6 sources of proceeds:
7 a. The proceeds of the next entrance fees received by the
8 provider for units for which there are no prior claims by any
9 resident until paid in full;
10 b. The proceeds of the next entrance fee received by the
11 provider for a like or similar unit as specified in the
12 residency or reservation contract signed by the resident for
13 which there are no prior claims by any resident until paid in
14 full; or
15 c. The proceeds of the next entrance fee received by the
16 provider for the unit that is vacated if the contract is
17 approved by the office before October 1, 2015. A provider may
18 not use this refund option after October 1, 2016, and must
19 submit a new or amended contract with an alternative refund
20 provision to the office for approval by August 2, 2016, if the
21 provider has discontinued marketing continuing care contracts,
22 within 200 days after the date of notice.
23 3. For contracts entered into on or after January 1, 2016,
24 that provide for a refund in accordance with sub-subparagraph
25 2.b., the following provisions apply:
26 a. Any refund that is due upon the resident’s death or
27 relocation of the resident to another level of care that results
28 in the termination of the contract must be paid by the earlier
29 of:
30 (I) Thirty days after receipt by the provider of the next
31 entrance fee received for a like or similar unit for which there
32 is no prior claim by any resident until paid in full; or
33 (II) Within a specified maximum number of months or years,
34 determined by the provider and specified in the contract, after
35 the contract is terminated and the unit is vacated.
36 b. Any refund that is due to a resident who vacates the
37 unit and voluntarily terminates a contract after the 7-day
38 rescission period required in subsection (2) must be paid within
39 30 days after receipt by the provider of the next entrance fee
40 for a like or similar unit for which there are no prior claims
41 by any resident until paid in full and is not subject to the
42 provisions in sub-subparagraph a. A contract is voluntarily
43 terminated when a resident provides written notice of intent to
44 leave and moves out of the continuing care facility after the 7
45 day rescission period.
46 4. For purposes of this paragraph, the term “like or
47 similar unit” means a residential dwelling categorized into a
48 group of units which have similar characteristics, such as
49 comparable square footage, number of bedrooms, location, age of
50 construction, or a combination of one or more of these features
51 as specified in the residency or reservation contract. Each
52 category must consist of at least 5 percent of the total number
53 of residential units designated for independent living or 10
54 residential units designated for independent living, whichever
55 is less. However, a group of units consisting of single family
56 homes may contain fewer than 10 units.
57 5. If the provider has discontinued marketing continuing
58 care contracts, any refund due a resident must be paid within
59 200 days after the contract is terminated and the unit is
60 vacated.
61 6.4. Unless subsection (5) applies, for any prospective
62 resident, regardless of whether or not such a resident receives
63 a transferable membership or ownership right in the facility,
64 who cancels the contract before occupancy of the unit, the
65 entire amount paid toward the entrance fee shall be refunded,
66 less a processing fee of up to 5 percent of the entire entrance
67 fee; however, the processing fee may not exceed the amount paid
68 by the prospective resident. Such refund must be paid within 60
69 days after the resident gives giving notice of intention to
70 cancel. For a resident who has occupied his or her unit and who
71 has received a transferable membership or ownership right in the
72 facility, the foregoing refund provisions do not apply but are
73 deemed satisfied by the acquisition or receipt of a transferable
74 membership or an ownership right in the facility. The provider
75 may not charge any fee for the transfer of membership or sale of
76 an ownership right.
77 (i)(h) State the terms under which a contract is canceled
78 by the death of the resident. These terms may contain a
79 provision that, upon the death of a resident, the entrance fee
80 of such resident is considered earned and becomes the property
81 of the provider. If the unit is shared, the conditions with
82 respect to the effect of the death or removal of one of the
83 residents must be included in the contract.
84 (j)(i) Describe the policies that may lead to changes in
85 monthly recurring and nonrecurring charges or fees for goods and
86 services received. The contract must provide for advance notice
87 to the resident, of at least 60 days, before any change in fees
88 or charges or the scope of care or services is effective, except
89 for changes required by state or federal assistance programs.
90 (k)(j) Provide that charges for care paid in one lump sum
91 may not be increased or changed during the duration of the
92 agreed upon care, except for changes required by state or
93 federal assistance programs.
94 (l)(k) Specify whether the facility is, or is affiliated
95 with, a religious, nonprofit, or proprietary organization or
96 management entity; the extent to which the affiliate
97 organization will be responsible for the financial and
98 contractual obligations of the provider; and the provisions of
99 the federal Internal Revenue Code, if any, under which the
100 provider or affiliate is exempt from the payment of federal
101 income tax.
102 Section 2. Section 651.028, Florida Statutes, is amended to
103 read:
104 651.028 Accredited facilities.—If a provider is accredited
105 without stipulations or conditions by a process found by the
106 office to be acceptable and substantially equivalent to the
107 provisions of this chapter, the office may, pursuant to rule of
108 the commission, waive any requirements of this chapter with
109 respect to the provider if the office finds that such waivers
110 are not inconsistent with the security protections intended by
111 this chapter.
112 Section 3. Subsection (1) of section 651.071, Florida
113 Statutes, is amended to read:
114 651.071 Contracts as preferred claims on liquidation or
115 receivership.—
116 (1) In the event of bankruptcy, receivership, or
117 liquidation proceedings against a provider, all continuing care
118 and continuing care at-home contracts executed by a provider
119 shall be deemed preferred claims against all assets owned by the
120 provider; however, such claims are subordinate to those priority
121 claims set forth in s. 631.271 and any secured claim.
122 Section 4. Subsections (4) and (5) of section 651.105,
123 Florida Statutes, are amended, and subsection (6) is added to
124 that section, to read:
125 651.105 Examination and inspections.—
126 (4) The office shall notify the provider and the executive
127 officer of the governing body of the provider in writing of all
128 deficiencies in its compliance with the provisions of this
129 chapter and the rules adopted pursuant to this chapter and shall
130 set a reasonable length of time for compliance by the provider.
131 In addition, the office shall require corrective action or
132 request a corrective action plan from the provider which plan
133 demonstrates a good faith attempt to remedy the deficiencies by
134 a specified date. If the provider fails to comply within the
135 established length of time, the office may initiate action
136 against the provider in accordance with the provisions of this
137 chapter.
138 (5) At the time of the routine examination, the office
139 shall determine if all disclosures required under this chapter
140 have been made to the president or chair of the residents’
141 council and the executive officer of the governing body of the
142 provider.
143 (6) A representative of the provider must give a copy of
144 the final examination report and corrective action plan, if one
145 is required by the office, to the executive officer of the
146 governing body of the provider within 60 days after issuance of
147 the report.
148 Section 5. Section 651.081, Florida Statutes, is amended to
149 read:
150 651.081 Residents’ council.—
151 (1) Residents living in a facility holding a valid
152 certificate of authority under this chapter have the right of
153 self-organization, the right to be represented by an individual
154 of their own choosing, and the right to engage in concerted
155 activities for the purpose of keeping informed on the operation
156 of the facility that is caring for them or for the purpose of
157 other mutual aid or protection.
158 (2)(a) Each facility shall establish a residents’ council
159 created for the purpose of representing residents on matters set
160 forth in s. 651.085. The residents’ council shall may be
161 established through an election in which the residents, as
162 defined in s. 651.011, vote by ballot, physically or by proxy.
163 If the election is to be held during a meeting, a notice of the
164 organizational meeting must be provided to all residents of the
165 community at least 10 business days before the meeting. Notice
166 may be given through internal mailboxes, communitywide
167 newsletters, bulletin boards, in-house television stations, and
168 other similar means of communication. An election creating a
169 residents’ council is valid if at least 40 percent of the total
170 resident population participates in the election and a majority
171 of the participants vote affirmatively for the council. The
172 initial residents’ council created under this section is valid
173 for at least 12 months. A residents’ organization formalized by
174 bylaws and elected officials must be recognized as the
175 residents’ council under this section and s. 651.085. Within 30
176 days after the election of a newly elected president or chair of
177 the residents’ council, the provider shall give the president or
178 chair a copy of this chapter and rules adopted thereunder, or
179 direct him or her to the appropriate public website to obtain
180 this information. Only one residents’ council may represent
181 residents before the governing body of the provider as described
182 in s. 651.085(2).
183 (b) In addition to those matters provided in s. 651.085, a
184 residents’ council shall provide a forum in which a resident may
185 submit issues or make inquiries related to, but not limited to,
186 subjects that impact the general residential quality of life and
187 cultural environment. The residents’ council shall serve as a
188 formal liaison to provide input related to such matters to the
189 appropriate representative of the provider.
190 (c) The activities of a residents’ council are independent
191 of the provider. The provider is not responsible for ensuring,
192 or for the associated costs of, compliance of the residents’
193 council with the provisions of this section with respect to the
194 operation of a residents’ council.
195 (d) A residents’ council shall adopt its own bylaws and
196 governance documents. The residents’ council shall provide for
197 open meetings when appropriate. The governing documents shall
198 define the manner in which residents may submit an issue to the
199 council and define a reasonable timeframe in which the
200 residents’ council shall respond to a resident submission or
201 inquiry. A residents’ council may include term limits in its
202 governing documents to ensure consistent integration of new
203 leaders. If a licensed facility files for bankruptcy under
204 chapter 11 of the United States Bankruptcy Code, 11 U.S.C.
205 chapter 11, the facility, in its required filing of the 20
206 largest unsecured creditors with the United States Trustee,
207 shall include the name and contact information of a designated
208 resident selected by the residents’ council and a statement
209 explaining that the designated resident was chosen by the
210 residents’ council to serve as a representative of the
211 residents’ interest on the creditors’ committee.